A-LevelAccountingFinancial Statements AnalysisMay/June 2015Paper 1 Q201 Mark
A company's gross profit ratio (margin) for the year ended 31 December 2013 was 25% but increases to 28% for the year ended 31 December 2014. What could have been responsible for the increase?
Aan increase in the cost of purchases during 2014
Ban increase in the volume of sales during 2014
Can over-valuation of inventory at 31 December 2014
Dan under-valuation of inventory at 31 December 2014
✓ Correct Answer
The correct answer is C. This question tests the candidate's understanding of financial statements analysis within the Accountingsyllabus. The examiner's mark scheme requires...
📋 Examiner Report & Trap Analysis
Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
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